Skip to content
    AMT
    Earnings call· Jun 2026(Q2 FY26)

    AMERICAN TOWER CORP /MA/ Q2 FY26 earnings call AMT

    Jul 28, 2026 Source

    Executive summary

    American Tower Q2 FY26 — Strong Leasing Demand and Raised Full-Year Outlook

    American Tower delivered a strong second quarter, driven by robust global tower leasing and record data center performance, leading to a second upward revision of its full-year outlook. The company is strategically focused on developed markets and high-quality earnings streams, evidenced by the CoreSite expansion and APAC divestitures, positioning it for an inflection in AFFO per share growth in 2027 as current headwinds ease.

    Highlights

    5

    • Consolidated property revenue grew over 5% year-over-year (excluding noncash straight-line revenue and FX impacts), and over 7% on a cash FX-neutral basis normalized for DISH churn.

    • Data center revenue growth was approximately 12% (excluding noncash straight-line revenue), marking the fifth consecutive quarter of double-digit growth.

    • CoreSite achieved another record leasing performance, adding more new business in Q2 FY26 than in the entire year of 2021.

    • Full-year outlook raised for the second time this year across all key consolidated financial metrics, including a 1% increase to property revenue outlook and 1% increase to adjusted EBITDA outlook.

    • Leverage ended the quarter at 4.9x, within the target range of 3x to 5x, maintaining a strong credit profile.

    Concerns

    3

    • Cash adjusted EBITDA margins declined approximately 40 basis points year-over-year, primarily due to DISH-related churn and SG&A timing.

    • Attributable FFO per share growth was approximately 1% (excluding FX impacts), with refinancing costs representing an approximately 150 basis point headwind for the full year.

    • Latin America organic growth declined over 2%, primarily driven by elevated churn in Brazil.

    Guidance & targets

    16
    CategoryTargetConfidence
    Organic tenant billings growth (global tower business)
    approximately 4%
    high materiality
    High
    Data center revenue growth
    approximately 15%
    high materiality
    High
    Property revenue growth (ex-noncash straight-line & FX)
    nearly 4% year-over-year growth
    high materiality
    High
    Property revenue growth (cash FX-neutral, ex-DISH churn)
    approximately 6% growth
    high materiality
    High
    Adjusted EBITDA growth (ex-noncash net straight-line & FX)
    over 2% growth year-over-year
    high materiality
    High
    Adjusted EBITDA growth (cash FX-neutral, ex-DISH churn)
    approximately 5% growth
    high materiality
    High
    Attributable AFFO per share growth
    approximately 3% year-over-year
    high materiality
    High
    Attributable AFFO per share growth (FX-neutral, ex-DISH churn & refinancing costs)
    nearly 6% growth
    high materiality
    High
    Long-term AFFO per share growth
    mid- to high single-digit range
    high materiality
    High
    Services revenue
    $245 million
    medium materiality
    High
    Capital program
    nearly $1.9 billion
    high materiality
    High
    Discretionary capital allocation to developed markets
    approximately 85%
    high materiality
    High
    Capital spend in data center portfolio
    over $700 million
    high materiality
    High
    Capital spend to construct new towers globally
    approximately $370 million
    medium materiality
    High
    Capital spend to purchase land beneath towers
    approximately $210 million
    medium materiality
    High
    Share repurchases
    over $200 million
    medium materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Consolidated Property Revenue
    Excluding noncash straight-line revenue and FX impacts.
    Cash FX-neutral growth (normalized for DISH churn): over 7%
    		over 5% YoYover 5%——
    Consolidated Organic Tenant Billings Growth
    Driven by solid demand across the global portfolio.
    Excluding DISH churn: approximately 4%
    		—nearly 2%——
    US & Canada
    Consistent with expectations for durable growth.
    Organic growth excluding DISH churn: approximately 5%
    		—nearly 1%——
    Africa & APAC
    Churn is expected to be back-half weighted.
    Organic growth H1: approximately 10%Organic growth H2 expected: approximately 7%
    		—nearly 11%——
    Europe
    Solid mid-single-digit organic tenant billings growth, performing better than original underwriting.
    		—approximately 4%——
    Latin America
    Primarily driven by elevated churn in Brazil, consistent with expectations.
    		—declined over 2%——
    Data Center
    Property revenue growth when excluding noncash straight-line revenue. Fifth consecutive quarter of double-digit revenue growth.
    		approximately 12%approximately 12%——

    Operational metrics

    38
    FX Tailwinds (Property Revenue Outlook Increase)
    $35 million
    FY26

    Contribution to the $110 million increase in property revenue outlook at the midpoint.

    Data Center Outperformance (Property Revenue Outlook Increase)
    $25 million
    FY26

    Contribution to the $110 million increase in property revenue outlook at the midpoint.

    Other Items (Property Revenue Outlook Increase)
    $65 million
    FY26

    Contribution to the $110 million increase in property revenue outlook at the midpoint.

    Philippines & Bangladesh Divestitures (Property Revenue Outlook Impact)
    -$15 million
    FY26

    Offsetting factor in the property revenue outlook increase.

    FX Tailwinds (Adjusted EBITDA Outlook Increase)
    $20 million
    FY26

    Contribution to the $45 million increase in adjusted EBITDA outlook at the midpoint.

    Data Center Outperformance (Adjusted EBITDA Outlook Increase)
    $30 million
    FY26

    Contribution to the $45 million increase in adjusted EBITDA outlook at the midpoint.

    Onetime Benefits (Adjusted EBITDA Outlook Increase)
    $35 million
    FY26

    Contribution to the $45 million increase in adjusted EBITDA outlook at the midpoint.

    Philippines & Bangladesh Divestitures (Adjusted EBITDA Outlook Impact)
    -$10 million
    FY26

    Offsetting factor in the adjusted EBITDA outlook increase.

    Other Items (Adjusted EBITDA Outlook Impact)
    -$30 million
    FY26

    Offsetting factor in the adjusted EBITDA outlook increase.

    Adjusted EBITDA Growth (Cash FX-neutral, ex-DISH churn)
    over 6%YoY
    Q2 FY26

    Normalized for the impact of onetime DISH churn.

    Cash Adjusted EBITDA Margins
    -40 bpsYoY
    Q2 FY26

    Primarily due to DISH-related churn and SG&A timing.

    Cash Adjusted EBITDA Margins (ex-DISH churn)
    expanded approximately 30 basis pointsYoY
    Q2 FY26

    Excluding DISH-related churn.

    Attributable FFO per share growth (ex-FX impacts)
    approximately 1%YoY
    Q2 FY26

    Excluding FX impacts.

    Adjusted EBITDA Outperformance (AFFO per share impact)
    $0.12
    FY26

    Contribution to the $0.09 per share increase in attributable AFFO outlook.

    FX Tailwinds (AFFO per share impact)
    $0.06
    FY26

    Contribution to the $0.09 per share increase in attributable AFFO outlook.

    Cash Taxes (AFFO per share impact)
    -$0.04
    FY26

    Downside impact to attributable AFFO outlook, related to EBITDA outperformance.

    Net Interest Expense (AFFO per share impact)
    -$0.04
    FY26

    Downside impact to attributable AFFO outlook.

    Philippines & Bangladesh Divestitures (AFFO per share impact)
    -$0.01
    FY26

    Downside impact to attributable AFFO outlook.

    Services Business Headwind (AFFO per share growth)
    approximately 100 basis point
    FY26

    Expected headwind to attributable AFFO per share growth this year.

    Debt Refinancing Headwind (AFFO per share growth)
    approximately 150 basis pointup from 100 bps
    FY26

    Expected headwind to attributable AFFO per share growth this year, increased from prior outlook.

    Leverage (Net Debt/Adjusted EBITDA)
    4.9x
    Q2 FY26

    Ended the quarter within the target range of 3x to 5x.

    Dividend Payout (Total)
    $3.3 billion
    FY26

    Expected full-year dividend payout, subject to Board approval.

    Dividend Growth
    roughly 5%
    FY26

    Expected full-year dividend growth.

    Share Buyback Program (Total Authorization)
    $2 billion
    Ongoing

    Total program approved by the Board of Directors.

    Share Buyback Program (Spent to Date)
    about $600 million
    YTD

    Amount spent from the $2 billion program.

    Services Revenue
    $340 million
    FY25

    Services revenue in the prior year.

    American Tower Ownership of CoreSite JV
    about 72%
    Q2 FY26

    Ownership percentage as of Q2 FY26, prior to convertible note conversion.

    Stonepeak Ownership of CoreSite JV
    about 28%
    Q2 FY26

    Ownership percentage as of Q2 FY26, prior to convertible note conversion.

    American Tower Ownership of CoreSite JV (post Q3 conversion)
    about 64%
    Post Q3 FY26

    Expected ownership percentage after Stonepeak's convertible note converts to equity in Q3.

    Stonepeak Ownership of CoreSite JV (post Q3 conversion)
    about 36%
    Post Q3 FY26

    Expected ownership percentage after Stonepeak's convertible note converts to equity in Q3.

    US New Business Contribution to Organic Tenant Billings
    about 250 basis pointsconsistent with last year (ex-DISH)
    FY26

    Contribution from carrier network investments.

    US Escalator Contribution to Organic Tenant Billings
    3%
    FY26

    Contribution from contractual escalators.

    US Churn Rate
    1% to 2%
    Ongoing

    Current churn rate, ex-DISH and prior years.

    US Organic Growth Rate
    4.5%
    FY26

    Expected organic growth rate for 2026, combining new business, escalators, and churn.

    AFFO per share growth (FX-neutral, normalized for nonrecurring headwinds)
    around 7%
    FY26

    Pro forma growth rate if normalizing for DISH churn, refinancing headwinds, and services step-down.

    CoreSite Megawatts in Service Growth
    1.5x
    Since acquisition

    Growth in megawatts in service since acquiring CoreSite in 2021.

    CoreSite Development Pipeline Capacity Growth
    nearly triple
    Future

    Clear path to nearly triple capacity from current levels through the development pipeline.

    CoreSite Megawatts Under Construction
    36 megawatts
    Q2 FY26

    Capacity currently under construction at CoreSite.

    Industry KPIs

    4
    MetricValueDetails
    Carrier churn impact400 basis pointsbps
    Interconnection revenuebig inflection
    Bookings leasing volume signedrecord
    Organic tenant billings growthapproximately 4%%

    Orderbook & backlog

    1
    CoreSite Megawatts Under Construction36 megawattsQ2 FY26

    8% leased

    Deals & partnerships

    1
    nullSale of operations in the Philippines and Bangladesh, marking exit from APAC region.

    The divestitures occurred in mid to late June 2026, and the revised outlook now excludes contributions from these regions for the remainder of the year.

    Capital programs

    3
    Data Center Portfolio Expansionunderway
    Period spend: over $700 million

    Benefit: nearly triple our capacity

    Part of the 2026 growth capital plan, focused on developing more capacity in the data center portfolio. Management continues to evaluate opportunities to expand the development pipeline even further.

    New Towers Constructionunderway
    Period spend: approximately $370 million

    Part of the 2026 growth capital plan, for constructing new towers globally.

    Land Purchase Beneath Towersunderway
    Period spend: approximately $210 million

    Part of the 2026 growth capital plan, for purchasing land beneath existing towers.

    Risks & headwinds

    4
    DISH-related churnFY26

    approximately 40 basis points impact on cash adjusted EBITDA margins; 400 basis points headwind to AFFO per share growth (normalized for non-recurring headwinds).

    Mitigation: The company is 'on the other side of the DISH churn issue' and expects no DISH churn impact in 2027.

    Higher interest rates and refinancing costsFY26

    approximately 150 basis point headwind to attributable AFFO per share growth (up from 100 bps in prior outlook).

    Mitigation: Proactive steps taken to reduce floating rate debt.

    Services revenue step-downFY26

    approximately 1% headwind to AFFO per share growth (from $340M in 2025 to $240M in 2026).

    Mitigation: Underpinned by a broad base of services provided to customers, including end-to-end solutions and strong contributions from acquisition, zoning, and permitting services.

    Elevated churn in BrazilQ2 FY26

    Latin America organic growth declined over 2% primarily driven by elevated churn in Brazil.

    Mitigation: Encouraged by prospects of an earlier-than-expected market repair in Brazil and forthcoming acceleration in organic growth in 2027.

    What to watch in Q3 FY26

    5

    CoreSite Convertible Note Conversion

    Q3 FY26
    CurrentStonepeak owns ~28% equity and holds a convertible note.
    TargetStonepeak ownership increases to ~36% equity, American Tower to ~64%.

    Why it matters

    This conversion will impact the ownership structure and attributable AFFO calculation for the CoreSite joint venture, clarifying future financial reporting.

    In Q3, we will expect -- we expect that to convert to equity. So that will move the ownership percentage of Stonepeak up to about 36% or move ours down to about 64%.

    Q&A highlights

    7

    What are the best investment opportunities now that leverage is in target range and APAC is exited? Any comments on buybacks or domestic M&A? What drove data center outperformance (lease rate vs. occupancy)?

    Management prioritizes domestic and developed market towers, and CoreSite expansion, citing 5G densification, new spectrum, AI, and 6G as catalysts. CoreSite offers mid-teen stabilized yields. Buybacks are in the toolkit, with $200M allocated year-to-date. Data center outperformance was broad-based, driven by strong sales in traditional and retail customers, hybrid multi-cloud, AI use cases, mark-to-market trends, and a significant inflection in interconnection activity.

    “from my perspective, the top priorities are domestic and developed market towers and data centers. Our internal CapEx program has provided us a lot of opportunities to invest, and that's been through build-to-suits and this organic builds in the CoreSite.”

    asked by Michael Ng · answered by Steven Vondran

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Priorities and Market Tailwinds

    American Tower is focused on driving durable revenue growth, enhancing operational efficiency, and disciplined capital allocation. The company benefits from secular trends like mobile data consumption, cloud adoption, and AI-driven workloads, which are increasing demand for critical digital infrastructure globally. These trends are driving a growing need for the critical infrastructure that American Tower provides, reinforcing its long-term growth story.

    02

    5G Investment Cycle and Future Catalysts

    The industry is entering a capacity-focused phase of the 5G cycle, requiring network densification, which is already translating into more co-locations. Upcoming spectrum deployments (800 MHz, upper C-band in 2027), the eventual transition to 6G, and the emergence of AI applications are expected to drive significant network investment and demand for tower infrastructure well into the next decade. These catalysts are anticipated to create multiple overlapping demand drivers, supporting network investment.

    03

    CoreSite Outperformance and Expansion

    CoreSite continues to be the fastest-growing segment, delivering record leasing performance driven by hyperscale cloud providers, enterprises, and AI innovators. Its strategic position as a hub for AI traffic and data exchange, with 9 of the top 10 AI companies and 3 of the top 5 Neo clouds deployed, enhances its competitive advantage. The company has grown megawatts in service by 1.5x since acquisition and has a clear path to nearly triple capacity, with ongoing evaluation for further expansion.

    04

    Operational Efficiency and Capital Allocation

    The company has expanded tower cash EBITDA margins by over 300 basis points in the last three years and targets an additional 200-300 basis points by 2030, exploring AI and automation for productivity. Capital allocation is focused on developed markets and higher-quality earnings streams, as demonstrated by the divestiture of Philippines and Bangladesh operations, which is expected to be neutral to AFFO per share growth while enhancing portfolio quality and focus.

    05

    Balance Sheet Strength and AFFO Growth Outlook

    American Tower maintains a strong balance sheet with leverage at 4.9x, within its target range of 3x to 5x, and a strong credit rating. Despite headwinds from higher interest rates and services revenue step-down, the company expects 2026 to be a trough year for attributable AFFO per share growth, with a meaningful inflection and return to mid-to-high single-digit growth expected in 2027 as these non-recurring📎 headwinds ease.

    AI-generated summary of the company’s earnings call. Not investment advice.